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Vietnam will start marketing $500 million in bonds to international investors this week, marking its first sovereign debt issue after considering such a sale for more than a decade, a market source said Monday.

Vietnam will launch presentations on the January 2016 bonds on Thursday and they would continue next week, a market source said. The funds will be invested in a shipyard.

Analysts and fund managers said the issue should be met with favorable demand, despite a rising risk aversion in global markets.

"It should be able to sell. After all it's a new name," said Ben Yuen, head of Asian fixed income at First State Investments.

"China and India are the hottest countries in terms of economic growth in the medium to long-term. Vietnam is the third country with strong potential growth."

The promotional tour will be held in Hong Kong on Thursday, Singapore on Friday, London on Oct. 24, New York on Oct. 25 and Boston on Oct. 26, the source said.

Credit Suisse First Boston is the sole book runner.

Vietnam's finance ministry has said the bond would help create a benchmark for Vietnamese bonds abroad.

Vietnam has $453 million in relatively illiquid Brady bonds, which were issued in 1998 as part of a debt restructuring. In September 2002, Hanoi said it had bought back one-third of the bonds.

The proceeds of the dollar-bond sale will be invested in a large shipyard belonging to state-run shipbuilder Vinashin.

"Given that it's a new name and there will be some scarcity value associated with that, I suspect it will be met with favorable market conditions," said Tim Condon, head of Asian financial market research at ING Financial Markets.

Condon expects Vietnam to price close to Indonesian sovereign curve. Indonesia's January 2016 bonds were yielding around 7.753/7.645 percent on Monday.